WASHINGTON -- In an abrupt about-face, House Republican leaders Thursday agreed to a two-month extension of a Social Security payroll tax cut and federal unemployment benefits, GOP aides said.
The move reflects a bowing to demands by the Senate and President Barack Obama and appears to all but assure 160 million workers aren't hit by a 2 percentage point increase in the payroll tax on Jan. 1.
House Republicans balked at the bipartisan Senate bill earlier this week, and their leaders, as recently as Thursday morning, had insisted that the Senate begin talks on a one-year measure passed by the House last week. The Senate passed a 2-month extension on Saturday.
House GOP leaders appeared to be adopting a compromise suggested by Senate Minority Leader Mitch McConnell to pass the two-month extension in exchange for the Senate appointing members to a conference committee, which will negotiate a longer-term solution. The proposal won a nod of approval from President Obama and Senate Majority Leader Harry Reid.
The deal entails a new bill with language protecting small businesses from a measure in the Senate bill that creates temporary new caps on the wages that are subject to payroll tax relief, a Republican aide said. Reid accepted the House Republicans' proposal late this afternoon. The new bill would require both Senate and House approval.
The bill could potentially be passed by unanimous consent, which would not require all the members to return for a vote.
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